Norway-based REEtec wants more rare earths from Vital's plant in Canada
(Kitco News) -Vital Metals (ASX: VML), thefirst rare earths producer in Canada and only the second in North America,announced yesterday that it has amended its offtake agreement with Norway-basedREEtec, increasing the volume of product sold to REEtec by 50%.
Under the amended agreement,Vital said it will sell to REEtec rare earth carbonate product containing aminimum of 750t Neodymium/Praseodymium (NdPr), contained within 2,000t/yeartotal rare earth oxides (TREO) with a maximum of 25% Cerium.
This represents a total of75% of Vital's expanded operation at its Saskatoon rare earths extraction plantand represents a 50% increase in the product to be supplied under the existingDefinitive Off-take Agreement, the company added.
Managing Director GeoffAtkins commented, "This 50% increase in product to be sold to REEtec representsa vote of confidence in Vital Metals' ability to guarantee feedstock to theEuropean rare earths supply chain."
"This increase will result inthe expansion of our Saskatoon plant to double capacity by the end of 2023 withREEtec taking 75% of the plant capacity from that time. There's also potentialfor a long- term supply agreement for an additional 10 years after 2028, whichwould give us a guaranteed market for our products as we look to extendNechalacho's mine life in Stage 2 operations and bring our other projectson-line," he added.
Vital Metals is an explorerand developer focusing on rare earths, technology metals and gold projects. Thecompany's projects are located across a range of jurisdictions in Canada,Africa and Germany.
By Vladimir BasovFor Kitco News
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